IoT Strategy for Telcos: Critical Success Factors to Win in the Changing Business Landscape

Abstract

The term Internet of Things (IoT) has been a buzzword for past few years with analysts claiming this to generate up to $11T in economic value by 2025. In the search of these economic benefits, Telcos have experimented with IoT with varying degrees of success. This paper gives a view of changing business landscape with the advent of IOT and discusses the critical success factors required for Telcos to succeed. With the help of concrete examples, the paper will answer questions such as - Why is the IoT market different, Why do the Telcos need to offer services beyond connectivity, What key changes are required to capture value across IoT value chain. The paper argues that Telcos will need to take decisive steps along 4 key dimensions - Strategic Focus, Organizational Realignment, Partnership Orientation, and Technology Selection - to establish themselves as a successful IoT service provider. The paper provides evidence via failed IoT initiatives of pioneering Telcos and the changes made along these dimensions to be successful. The paper also gives a summary of latest initiatives by world leading Telcos and proposes a holistic approach to turn a Telco into a successful end-to-end IoT service provider to capture maximum value in the IoT market place.

Keywords: Internet of Things, IoT Strategy for Telcos, IoT value chain, IoT success stories, IoT Access

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